Nothing brings an economy to a grinding halt like a global pandemic. Border closures, travel restrictions, and shelter in place decrees like we’re currently experiencing are unprecedented. Not since 9/11 has aviation seen such a dramatic grounding of planes. And by all accounts, we haven’t yet hit the apex of the COVID-19 pandemic.
In the early days of its spread, the virus actually propelled BizAV to unprecedented levels of demand as people chartered jets to escape airports, get home, and travel in isolation. But now, even business jets sit idle on the tarmac. BizAV is in for a rough spring and summer, and the industry is bracing itself for sharp downturn.
Shutdowns loom over private aviation
Stopping the spread of COVID-19 has called for increasingly stringent sheltering. Domestic travel is nearly at a standstill as most of the country abides by stay at home orders. Moreover, international travel to and from major economic hubs just isn’t possible right now due to closed borders and stringent travel guidelines. Currently, flights from 26 countries are barred from entering the U.S. alone, with similar countries following suit. All told, as many as 500 transatlantic flights were prevented in March.
But the downtrend in travel isn’t the only thing hurting BizAV. Business aircraft factory closures are stifling the industry as major manufacturers like Textron, Bombardier, and Embraer close their doors and furlough staff. This looms heavy over private aviation, indicating new jet deliveries and announcements may be delayed even after the economy regains its footing.
The numbers indicate turbulence
Aviation data analyst WingX has tracked the status of business aviation charters throughout the spread of COVID-19. They found decreases that may have been much worse without the initial surge of demand as countries began declaring a state of emergency. WingX data from March shows:
U.S. business jet flight activity decreased by 21%.
Flight activity was 25% lower for Europe and Asia.
Italy saw a 70% reduction in business flights.
France saw a 43% reduction in business flights.
Germany and Switzerland saw a 30%+ reduction in business flights.
WingX also compiles detailed flight data about the length of charters and the plane itself. According to the organization’s most recent report, “all aircraft segments have seen severe declines.”
Some charter companies like Jet Linx and VistaJet have begun offering heavily discounted jet cards to customers as a way to bring new interest into the industry. Other private charter companies have leaned into civil service. Charter providers JSX and JetSuite have helped repatriate more than 100 U.S. citizens stranded abroad. Private Jet Services Group has similarly helped more than 11,000 students, athletes, executives, and families get home. Even more providers have offered up service to transport medical equipment and supplies regionally.
There’s no doubt BizAV will survive the downturn brought on by COVID-19. But it could be some time before private aviation gets back up and running with vigor. Until then, manufacturers, brokers, flight crews, jet owners, and travelers will all wait with bated breath.
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
Throughout its tenure, the Trump Administration has implemented a variety of tax cuts and credits — many of them in the original Tax Cuts and Jobs Act (TCJA) of 2017. However, with the signing of the 2020 appropriations bill in December, yet another has been added to the list — the Biodiesel Income Tax Credit.
The Biodiesel Income Tax Credit originally expired on December 31, 2017, but was retroactively extended through December 31, 2022 by the Trump Administration. The incentive rewards taxpayers delivering biodiesel, agri-biodiesel, or renewable diesel fuels to the tune of $1 per gallon, redeemable as a credit against the taxpayer’s income tax liability. The credit applies up to two years retroactively.
The rise of sustainable biofuels
While the tax credit isn’t an outright benefit to jet owners, the BizAv community benefits. The purpose of the credit — to promote and encourage the development of sustainable aviation fuels (SAF) — aligns with the industry’s self-imposed goal of carbon-neutral growth, set in 2010.
The Sustainable Aviation Fuels Coalition (SAFC) — which includes the European Business Aviation Association, General Aviation Manufacturers Association, International Business Aviation Council, National Air Transportation Association, and National Business Aviation Association — has lauded the revival of the credit. The coalition believes the growing awareness and commitment to sustainability and carbon-neutral growth will encourage more jet biofuel makers to explore SAFs, creating demand within the industry.
The impact of SAFs is very real and continues to be a driver of environmental responsibility within BizAv. According to some estimates, SAFs are responsible for reductions in CO2 emissions up to 80%.
Beyond simply a tax incentive
Although biodiesel is already popular with jet owners, demand hasn’t been able to suppress price. In something of a vicious cycle, many jet owners have elected not to use SAFs despite interest, using cheaper fuels instead.
Reuters reports that in September 2019, 95 U.S. biodiesel plants produced 142 million gallons of the fuel, down from 164 million gallons a year earlier, according to the Energy Information Administration. The drop in demand likely coincides with the expiration of the tax credit in December 2017. Now, with the revival of the highlighted Biodiesel Income Tax Credit and increased emphasis on environmental concerns, jet owners may be more likely to consider SAFs. Analysts expect demand for SAFs to rise again in 2020. And with increased demand and the tax perks now associated with biofuel production, the price of SAFs may fall to a more appealing level for jet owners.
Going beyond renewed demand for biofuels, many industry analysts are hoping for increased demand in biofuel varieties as well. Innovations in fuel derivatives promise to make SAFs even more efficient alternatives to traditional diesel, with the potential to drastically cut carbon emissions and leave a cleaner planet for the generations to come.
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
Discrepancy isn’t a term with good connotations. It usually means something falls short of expectations or differs from the norm. When you’re buying a jet, it’s not a word you want to encounter at any phase of the transaction. But discrepancies are something almost every used jet buyer faces. They’re a natural part of the inspection process and an important one to acknowledge before ownership of the aircraft changes hands.
Also called “squawks,” discrepancies can range from minor annoyances to major airworthiness concerns. Aircraft buyers need to understand that discrepancies exist in every used jet, and that some squawks reserve more attention than others in their ability to make or break a sale.
A small rip in one of the passenger seats of a used jet is a discrepancy. But so is a leading edge that’s out of limits. One of these issues affects airworthiness; the other is purely cosmetic. Both show up on a discrepancy report, but one of them isn’t likely to sink a sale. Realizing the severity of a squawk within the context of the plane’s condition means discerning what’s truly important versus what’s not.
Who fixes damages and what’s worth haggling over?
A discrepancy report is going to list every single thing that’s wrong with a plane — from major airworthiness issues like body corrosion and worn brakes, to minor interior scuffs and stains. As a buyer, you’ll get the complete scoop on your potential investment. It can be overwhelming, especially if the report is several pages with multiple glaring concerns.
Who fixes discrepancies? That’s the question any buyer immediately asks, and the answer truly depends on the situation. The seller is on the hook to deliver an airworthy jet, so often they’ll assume responsibility for fixing major discrepancies. For cosmetic squawks and notes of condition, the situation can get murky. For example:
The seller may be willing to cover repairs up to a certain amount, allowing the buyer to choose which squawks to address with those funds.
The buyer and seller may negotiate a list of repairs, making the sale contingent on repair completion.
The seller may come down on sale price with the condition that the buyer assumes repair costs.
The buyer and seller may use a mediator to determine a fix/no fix list before the sale.
As with any transaction, the goal is to reach a compromise. Sellers want a fair price for their used jet; buyers want a jet that’s safe and in good condition. The key to achieving this balance lies in navigating the squawk scale. Beyond airworthiness repairs, buyers and sellers need to determine what cosmetic discrepancies are low priority versus those that could waylay a deal.
Listen to the squawks and distinguish what matters
The key to understanding, resolving, and moving past discrepancies is in navigating the pre-sale discrepancy report. Reports will (hopefully) be thorough, documenting the entire scope of a discrepancy. From this documentation, buyers and sellers can tell what’s of critical importance versus what’s just static. Beware of reports with lackluster descriptions and read deeper into squawks to get a feel for their level of importance. Then, make your concerns known to the seller before the transaction is finalized.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1 (305) 754-3313, or visit us online.
Business aviation reports out of Europe paint a declining picture of private charters. There’s been noticeable pullback in BizAv flights over the past 12 months ― as much as 16% since June 2018. Industry analysts expect the pullback to continue through the end of the year. Can the U.S. expect the same?
A look at the numbers
Concerns about BizAv on a global scale aren’t unwarranted. Figures out of Europe show a downturn in business flights across almost every sector ― several with double-digit decreases in traffic over the course of a year. As of June 2019, the figures for BizAv in Europe included:
Turboprops fell 28.6%
Large aircraft slid 14.4%
Light jet traffic dropped 5.3%
Midsize jets dipped 4%
The only segment of BizAv currently up year-over-year from 2018 is the super-midsize segment, which has seen a 4.8% increase in flights.
It’s also important to note that declines haven’t been consecutive. Europe’s BizAv market saw a spike in seasonal traffic in May, with all segments experiencing positive flight volume. The general decline is attributed to declines primarily from the fourth quarter of 2018 and the first quarter of 2019.
Germany’s economy has been slowing in 2019 and may enter recession territory in 2020. This pullback has contributed to belt-tightening among corporations that would otherwise contribute to BizAv statistics. Similarly, the uncertainty and relative mess of Brexit has hampered a large portion of BizAv traffic to and from London and other destinations. Combined, these two countries represent a significant portion of Europe’s BizAv sector. The result is plain to see: Continental flights are far below 2018 figures.
Interestingly, intercontinental flights are up. Flights to North America rose 5% and charters to Latin America saw explosive growth of 23%.
A glimpse into the future of U.S. BizAv?
Many have started wondering whether Europe’s BizAv troubles will arrive stateside. The U.S. economy appears to be following Germany’s cues toward a slowdown, and global trade tensions have eroded international relations. It’s conceivable that both will impact BizAv.
For now, however, the fears appear unwarranted. According to recent BizAv data, North America has seen an uptick of 2.4% in business aviation over the past 12 months. The FAA has forecasted strong growth in commercial aviation over the next 20 years, and BizAv is expected to follow. With the explosion of globalized commerce and continued expansion of economic hubs worldwide, it’s expected BizAv activity will maintain healthy growth over the long term.
Interesting enough, the tail end of 2019 could yield temporary downturn for BizAv – the fourth quarter tends to be the slowest of the year.
It seems for now Europe’s slowing BizAv sector is a unique problem. While some rippling effects are sure to hit North America, the U.S. remains on track for positive growth in the business aviation sector.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1 (305) 754-3313, or visit us online.
It’s been months since the initial headlines about Boeing’s 737 MAX scandal initially hit the media. Hundreds dead. Planes grounded. Intervention from the Federal Aviation Administration (FAA). Now, months later, the plane is no closer to a return to the skies and the industry has even more questions. The only thing that’s come to light in any real capacity is how much Boeing will end up paying for its lackadaisical approach to aircraft safety.
Breaking down the numbers
The big number facing Boeing right now is $4.9 billion. That’s the amount of a special charge the company will absorb in the second quarter of 2020. The true cost actually comes out to a roughly $5.6 billion reduction of revenue and pre-tax earnings, according to the company. This large sum may be the biggest to crater Boeing’s balance sheet, but it’s far from the last.
Alongside this special charge, Boeing anticipates increased production costs for future 737 MAX aircraft as well. That figure currently stands at $1.7 billion on top of the original cost of production cited by the company earlier in the year. Perhaps the most damaging aspect of this cost is its effect on future cash flow. It’s likely to be realized throughout 2020 as it’s incorporated into the next 3,000 or so planes produced by the company.
In addition to higher production costs, Boeing’s production numbers are down dramatically from 52 to 42 planes per month. The lost revenue from this lowered production output compounds its already mounting charges.
Ironically, the smallest sum within the scope of Boeing’s costs is a $50 million fund the company is establishing to deliver near-term relief to families of crash victims. Despite an unwelcome response from families calling this commitment a “PR stunt,” it’s nonetheless another cost to the business.
The total cost to Boeing at this point? Estimates put the number at roughly $8.3 billion. For a company with a $191 billion market cap, the cost may not seem insurmountable, but it’s certainly enough to hamstring the company headed into 2020 — especially as it loses orders to rival Airbus and its favor with the FAA.
Looking ahead … at upcoming costs
The dollar value attached to the 737 MAX scandal isn’t close to concrete. The tallied cost we have today only represents the near-term. Boeing stands to lose much more money in the coming months and years.
For starters, no one is certain when the 737 MAX will fly again. There is no end to the grounding in sight, which means lost revenue for every airline with a handicapped fleet. American Airlines, Southwest Airlines, and other major players have already begun reporting lower-than-expected earnings, citing the grounding as a prime contributor. Their lost revenue is soon to become Boeing’s. The company has already agreed to compensate customers affected by the grounding — namely in future discounts, representing even more costs to be paid in the future.
Boeing has also lost favor with the FAA. Initially slow to take action, the FAA has faced major backlash in recent months over the lack of oversight to Boeing. The agency appears to be on the outset of issuing new regulations aimed specifically at increasing its reach. For Boeing, a more involved FAA likely means higher costs and more regulatory hoops in the future.
The 737 MAX scandal itself may be in the rearview mirror, but Boeing’s costs are just beginning to mount. How high will they go? The next breakpoint appears to be tens of billions of dollars.
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
Flying on a company jet comes with broad benefits. When you’re traveling on a corporate or private jet, it’s much easier to sit back and enjoy your flight, or even host a meeting en route to your destination.
One of the few drawbacks associated with traveling via a business aviation (BizAv) flight, however, is that private airports aren’t always conveniently located. You may skip the security lines and airport lounges, only to find yourself stuck in a several-hour car ride to your final destination.
Identifying airports that offer convenient access to their respective city centers and an emphasis on servicing BizAv flights can make traveling via private aircraft both worthwhile and enjoyable.
The best BizAv airports
There are several airports throughout the world that cater to BizAv traffic and are beloved by industry insiders for their proximity to urban centers and business hubs. Here are the world’s most conveniently located airports specializing in BizAv flights:
1. Le Bourget, Paris — Paris-Le Bourget Airport is a storied institution. First established in 1919, the airport once served as Paris’ central air traffic hub. Today, it caters only to BizAv and other general aviation flights. The airport offers three runways and is only four miles from Paris.
2. Chicago Midway, Chicago — While commercial flights do fly into Chicago’s Midway International, the airport is increasingly used by BizAv, private, and chartered flights. Chicago Midway is just eight miles from the Chicago Loop, making it much closer to the city center than O’Hare and other suburban options.
3. Boeing Field, Seattle — Located primarily in Seattle’s Georgetown neighborhood, Boeing Field offers exceptionally convenient access to the Pacific Northwest’s vibrant tech hub. The airport offers two runways and is just five miles from Seattle’s city center. Boeing Field primarily serves BizAv, cargo, and general aviation needs.
4. Business Aviation Terminal, Nice, France — Nice’s conveniently located Business Aviation Terminal not only offers convenient access to the city and surrounding region but also provides a slew of amenities on-site, including luxury shopping and comfortable VIP lounges. Passengers can drive directly to the terminal entrance, where strategic shading allows for discrete entry.
5. London Farnborough, London — The United Kingdom’s first-ever operational airfield, London Farnborough is today completely free of commercial traffic. Located just under an hour from London’s city center, the Farnborough airport also offers direct access to aircraft from private vehicles. The airport boasts stellar service and striking architecture.
Convenience, comfort, and speed are three of the main benefits associated with traveling on a BizAv flight. Next time you find yourself traveling, consider flying through one of these dedicated business airports. It can help you reach your destination faster and maximize your investment in BizAv travel.
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
However, the BizAv industry is adapting. Jet owners have begun providing increasingly competitive benefits and emphasizing the exciting lifestyle associated with flying private aircraft. As operators continue adapting to a tightening labor market, they’re also maintaining the exceptionally high standards they look for when selecting a candidate.
Most aviation professionals crave a stable career, which is why large commercial airlines are so appealing. By offering the same consistent work and pay, the BizAv industry can attract top talent away from airlines.
BizAv careers include exciting travel to interesting destinations on behalf of inspiring people. It’s important for the BizAv industry to position its careers as an opportunity to participate in an exciting, growing community of aviation professionals. This fact alone also helps keep salaries from ballooning, as pilots trade monetary compensation for freedom and adventure.
Hiring a crew
Despite the general headwinds for finding competent, qualified flight staff, there are strategic advantages for BizAv in today’s tight labor market. Here’s where to start looking for pilots, flight attendants, and other flight staff:
Consult with your aircraft manufacturer — If you’ve recently purchased an aircraft and need a crew in a hurry, talk to the jet’s manufacturer. Some companies, like Bombardier, will help you hire a crew. This temporary crew will provide you with excellent service and flexibility until you’ve had the chance to hire a permanent team.
Recruit military veterans — Former members of the Armed Forces possess the technical skills necessary to pilot aircraft, as well as the professional demeanor necessary to conduct business with high-net-worth clients. Military veterans are among the first people you should turn to when staffing your jet.
Focus on individuals with VIP experience — You’ll need a crew that’s comfortable working with discretion. If your flight attendants find themselves starstruck by the passengers they’re assisting, they ultimately won’t be too much help in the air. It’s always best to find crew members with previous experience working with VIPs.
If you’re not the aircraft’s owner, consult with them when making hiring decisions. Ultimately, private flying is an intimate experience. It’s important that the passengers and crew members are able to develop a strong rapport.
Staffing a BizAv aircraft may be challenging; however, learning how to staff your aircraft correctly will ensure a comfortable and consistent flying experience.
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
Private jets are an impressive luxury by their very nature, but even in this lavish industry some aircraft are a step above. The most expensive private jets weren’t designed as private jets at all — instead, they were customized by businesses or individuals to create a space rivaling a luxury hotel. Whether it’s 24-karat gold bathrooms or an onboard horse stable, these aircraft go beyond luxury. Below are the five most expensive private jets.
Source: wikipedia.org
President Donald Trump’s Boeing 757-200 — $100 million
The Boeing 757 is a midsize airliner known to pilots as “the Ferrari of commercial jets.” Despite being a commercial aircraft, a Boeing 757 is Trump’s personal jet. Trump bought the jet from Microsoft CEO Paul Allen in 2011 for $100 million, a good price for an aircraft model that at the time was 20 years old. The interior was refurbished to fit 43 people, down from the original 180 to 200 passengers. Trump’s jet can fly for 16 hours and reach a speed of 500 miles per hour.
Speaking of Trump, he currently flies in the second most-expensive aircraft in the world, Air Force One, whose security features make its value $660 million. When Trump was elected, he stated he would prefer to fly in his own jet — but federal officials deemed it nearly impossible to retrofit the jet with the necessary security features.
Source: acj.airbus.com
ACJ319neo — $101.5 million
The ACJ, or Airbus Corporate Jet, is the business version of the Airbus A319neo. The $101.5 million price tag is before customization. It boasts the widest and tallest cabin of any corporate jet. The jet is capable of long-range flight from Los Angeles to Geneva. It also offers a lower cabin altitude of 6,400 feet, making passengers more comfortable. Its key feature is the sky ceiling which displays a live view of the sky, or other images.
Source: greenpnt.com
Boeing BBJ 747-8 — $324 million
In 2016, Chinese conglomerate company HNA Group spent $100 million turning the $224 million Boeing 747 into a private jet. This aircraft was the first Boeing Dreamliner purposely built as a private jet, so its interior and fittings were custom made. The interior is 2,400 square feet and includes a master suite with a California king bed, a walk-in closet, and a double-size shower. The BBJ — or Boeing Business Jet — fits up to 40 passengers.
Source: greenpnt.com
Boeing 747-8 VIP — $403 million
Another custom 747, the VIP is the longest and second largest airliner ever made — earning the nickname “Queen of the Skies.” The price tag is $403 million before adding luxury amenities. The interior is 4,786 square feet and features a stateroom, lounges, an office, and a dining room. It can fly 8,000 nautical miles nonstop. The aircraft’s owner remains anonymous.
Prince Al-Waleed’s Airbus 380 — $500 million
The Airbus 380 is the world’s biggest and most expensive private jet. Saudi Prince Al-Waleed bin Talal al-Saud customized the triple-decker commercial airliner to include a stable, a garage, and a prayer room that rotates to always face Mecca. Additional luxuries include a Turkish bath and a concert hall with a grand piano. Many airports have had to update their facilities to accommodate this aircraft, which is the world’s largest commercial airliner.
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
As an industry grows and evolves, consolidation becomes inevitable. Mergers and acquisitions are the way strong players get stronger and rising stars find success. It’s also a way to weed out inefficiency. In fragmented markets such as private aviation, consolidation is necessary to ensure the continued growth and expansion of the industry, before it begins to stagnate.
A look at the private aviation industry
Consolidation is nothing new for the private aviation sector. From 1955 to present day, 25 original manufacturers have existed. Today, there are roughly 14 producers still putting out jets, with 11 core companies presiding in ownership.
Over the past 60 years, several big names have changed hands and still more jets have fallen out of production. Some notable examples include the world-famous Learjet becoming part of Bombardier in 1990 and Cessna being absorbed by Textron Aviation in 1991. Various other smaller deals occurred right around the same time.
But there’s more consolidation to be had. In an industry such as private aviation, a near 1:1 manufacturer-to-owner ratio is a sign of market share up for grabs. Companies such as Boeing, Airbus, Embraer, and others have only been in the market for two decades, right around the time of the last industry consolidation. Opportunities for acquisition are coming to a head.
Beyond manufacturers
Manufacturers aren’t the only aspect of the aviation industry ripe for consolidation. Thanks to headwinds like the global pilot shortage and the rise of new trends like flight sharing, consolidation is also coming to management firms and chartering companies.
According to a panel of industry veterans at the Corporate Jet Investor Miami conference in November 2018, aircraft management is severely fragmented. Estimates show that the top 10 private jet management companies control less than 10% of the total global managed fleet. The sector needs acquisitions to create an economy of scale, bringing about lower costs and standardized incentives for qualified pilots.
Being able to standardize staffing, charters, jet maintenance, and more will enable the private aviation industry to scale sustainably in the coming years.
Change is already happening
While there are little more than rumblings about manufacturer mergers and acquisitions, change is already sweeping through other parts of the industry. In 2018, private charter broker PrivateFly was acquired by competitor Directional Aviation, creating the world’s largest provider of digital, on-demand private jet travel. The company has access to more than 7,000 aircraft worldwide.
This acquisition hasn’t gone unnoticed around the industry. Many smaller charter companies have begun posturing with hopes of acquisition, while others are certainly thinking more creatively about how to attract and retain customers.
Going back even further, jet management company Luxaviation began an acquisition run in 2014 that tripled its size in just two years. Since then it’s continued to grow, adopting chartered services and building out peripheral services to become a global leader in private aviation services. The company is a key example of what consolidation can do.
As the private aviation sector matures, consolidation is an inevitability. This year may be the year dominoes begin to fall and companies start to join forces, to reap a larger slice of the pie.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1 (305) 754-3313, or visit us online.
2018 was a rocky year for investments across different asset classes. Real estate coasted to highs across the nation, while the stock market rode a roller coaster through the end of the year. One type of investment soared high and stayed high, however: private jets. Business aviation saw big updrafts last year and will continue to ride these tailwinds deep into 2019.
According to the Jet Support Services Inc. (JSSI) Business Aviation Index, flight hours in the BizAv sector have shown a sustainable increase over the past year. Worldwide flight activity in 2018 was up 4.9% for the year; 4.7% in the fourth quarter. The JSSI Index — which tracks more than 2,000 business jets, turboprops, and helicopters across nine industries — reported an increase of 5.4% in chartered business flights.
Most impressive about the increase in privately chartered hours is the global growth of the industry. North America saw only a modest increase in flight hours (2.8%), while South America (8.1%), Europe (8.8%), and Africa (17.4%) all saw major upswings in private aviation. The global market is thriving.
The market continues to grow
In the United States, there’s reason to believe BizAv will continue steadily on its positive trajectory in 2019. In 2008, about 1,300 new private jets were delivered; however, the industry saw less than half that number in the years following the Great Recession. The industry hasn’t really recovered to previous levels since.
However, with some of the biggest aviation manufacturers located in North America, the number of new annual orders is starting to trend up. Demand from Asia and Europe, alongside domestic orders, is bringing the BizAv industry in America back up to par. And with laws to help owners write off depreciating jet costs as well as better supply chains, it’s getting easier to make, sell, and afford aircraft.
Today, the worldwide fleet consists of about 22,000 private jets — and counting. This number should rise thanks to innovations culminating in jets such as the Citation Longitude from Cessna and the Global 7500 from Bombardier, both slated for delivery later in 2019.
Together, better manufacturing, increased global demand, and innovative new jets are all in a position to push continued growth in the BizAv market.
Depreciation is a headwind
There are many tailwinds working in favor of BizAv right now. However, the industry isn’t without headwinds. Specifically, price depreciation is a glaring concern that could cause growth to taper off.
Since the Great Recession, aircraft values have depreciated rapidly during ownership, sometimes dipping below 50% of their purchase value. This makes private jets less of a value for owners interested in reselling. And while the pre-owned jet market has thrived in the past decade, the time has come for a new cycle of jets to enter the market. Unfortunately, this means owners will have to buy new before others can buy pre-owned. More buyers waiting to acquire a jet secondhand means fewer jets actually entering the market.
If innovation and favorable buying conditions are enough to spark the intrigue of prospective jet buyers, the private aviation market could see continued growth in 2019. If depreciation continues to be severe, many buyers may decide it’s not worth the investment. Time will tell!
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
Aviation data analyst WingX has tracked the status of business aviation charters throughout the spread of COVID-19. They found decreases that may have been much worse without the initial surge of demand as countries began declaring a state of emergency. WingX data from March shows:
Business aviation reports out of Europe paint a declining picture of private charters. There’s been noticeable pullback in BizAv flights over the past 12 months ― 
Flying on a company jet comes with broad benefits. When you’re traveling on a corporate or private jet, it’s much easier to sit back and enjoy your flight, or even host a meeting en route to your destination.
